Amazing Short Straddle Opportunity right now

[TheGoonior2]

Yes, this would have been a very ugly trade, and does emphasize the importance of those wings, even when you don't foresee the need. As I said, I didn't take any position, though I'm sure we're all kicking ourselves now for not taking a tremendously bullish position yesterday when we were reading / posting in the thread. Congrats to those who did

Wasn't a knock by any means. It was (and still is) pretty interesting to watch. I see they rolled out a whole bunch of new option strikes right during the middle of the day.

It's also interesting to watch the IV play out. I'm guessing the last huge spike was the rollout times of the new option strikes?

 

[Poljot]

I hope nobody entered this short straddle trade to loose 3k by now.
If only there was a way to see who was buying those calls before the announcement.

 

[VolSkewTrader]

Long 100 straddles would have made $450k+ at today's high.

 

[BlacknBlue]

Up 65% this morning

Yeah exactly, I don't know why people think it's a good idea to suggest writing a call the day after awesome news lol which is why I was OK with writing a put in theory but not a call.

 

[JesseJamesFinn1]

Van handed this one to us on a plate and the reason why, he told me to buy HOLX at $50s which I blundered not listening. His FA are second to known!

 

[easymon1]

Is shorting the call, meaning buy a "sell" call??

Is shorting the call, meaning buy a "sell" call??

i don't trade options.

the right questions will get you where you want to be.

what if 'I' wanted to put this trade on...
What would be the first step.
What would be the second step.
and so on in this fashion.
finding someone who will put up with that line of questioning might be found in a class, lol.
Get Dest's home phone number, i bet he likes calls like that along about 3:42AM. He'll be glad to help.
Sooner or later you will be makin 'that' trade or better.
Rock that sh*t brother.

 

[vanzandt]

Van handed this one to us on a plate and the reason why, he told me to buy HOLX at $50s which I blundered not listening. His FA are second to known!

I'll correct that for ya JJ.... there's fundy's.... they belong in the 401k....and then there's the way the market works near term.

Kodak was the latter.

I'm gonna do the @murray t turtle here

%%%%%
Someone is going to jail on this one.
"Not a prediction".

You guys need to look at things before the "news". The volumes. (hint)
If the SEC has a pulse.... someone is going to jail.

Whatever. Who cares.

___________________________

EDIT:.... maga

 

[misterkel]

The short straddle mentioned by the OP is selling a call and a put at the same strike at the same expiration. The concept behind it is to take advantage of a "perceived expensive" situation in premiums which is expected to correct (i.e: market volatility subsides, option premiums drop, and you can by back the straddle at a profit).

A common practice is to purchase "garbage" wings (long a put and call with out-of-the-money strikes...in other words, a long straddle) as a hedge.

Garbage wings? Never heard a butterfly called that before.

 

[TheGoonior2]

Garbage wings? Never heard a butterfly called that before.

Not my term...I may have actually misquoted, but I think it still applies. In the Atticus chapter in "Traders of the new era", he said: "I buy a lot of garbage puts". And someone on ET (KevinS, maybe) said something like "always buy your wings" or "never forget your wings".

 

[BBSLamer]

For those with fire power, great short straddle opportunity right now on KODK.

KODK 8/21
You can short the 7.50 Call for 3.80, short the 7.50 put for 1.95
You are profitable if KODK closes anywhere from 1.75-13.25 in Aug.

I have no position, just wanted to bring this great trade to the attention of anyone interested.

Expiration next week, this trade has become profitable.